@ROAM So I re-wrote this proposal taking into mind your points made:
I noted a some posts taking note of my original proposal on other forums and defiantly some interest from other posters here and while from what I understand the proposal does not have the votes necessary to move to an on-chain vote I thought an updated version may draw more interest.
I also would Iike to thank everyone who has looked at and added to this discussion, or mentioned it in other Algorand spaces to draw eyes to it.
Abstract:
Pushing diversification in the Tinyman treasury for future endeavors as well as deepening ties to other defi platforms.
Objective:
Tinyman for now is dependent on fee revenue from platform usage, this proposal would overtime shift the treasury to a more diversified and secure ground to build on, as well as supporting our partners in the Algorand ecosystem.
This fund could go to such endeavors such as a previously mentioned proposal to get Tiny listed on cexs, as such a move would also require planning and budgeting to support that with advertising and such to promote buys and onboard more into the community and exploring the ecosystem. Such an endeavor would need a more mature and stable treasury.
A mature treasury would also be effective in showcasing the stability of the platform when/if requesting matching grants for an initiative from a community governed platform like xGov as an example.
**
Background:**
Diversification of treasury funds is an important step towards self-sustainability of the Tinyman platform as well as the planning of future growth initiatives for the project. Not all prices move as one, and occasionally gains should be moved from more risky projects to more stable ones in the event of a downturn of prices in any particular sector. Example: A significant run on BTC might prompt the discussion and vote of taking a % of those profits and shifting some of the wBTC/goBTC into a USDC pairing.
Details:
Building a fund provides exposure to assets other than Tinyman, as well as periodic re-balancing and taking profits in the form of stablecoins to ensure funding for the long-term planning of the following: branding, advertising, ecosystem growth, and rewards for users.
Proposal Mechanics:
Much like our BBB TINY initiative this plan would align the platform towards a more sustainable community fund and provide some security in the event of market swings.
Likewise diversification can help build community and support within the broader Algorand defi ecosystem. As a limited example: Holding a portion of the treasury in the upcoming FOLKS token both helps grow the platform as well as giving Tiny users a stake in the governance of said platform.
Expected Outcomes:
Increased assurance of a maturing treasury will help encourage more locking of Tiny to have a say in how these funds are used, tokens providing a similar path towards price stability as our established BBB program.
Implementation Timeline:***
The addition of LP tokens to be added from fees collected and re-evaluate every quarter or every other quarter to see how things stand to is a good first few steps in this process, without much platform risk. As these funds are established and the platform continues to grow future Governance votes can adjust as needed, an example is if the expansion of Algorand and/or Tinyman prompt a surge of fees generated relative to previous few months may warrant a shift in strategy, or should we have prepared a plan to launch an initiative to bring in new users that may mean a draw down in the USDC pairing relative to the others, funds may need to be shifted to refill the pairing overtime.
Significant milestones would be an establishment of x token/LP as a % of the Treasury. Say to start, purchases of:
goBTC/wBTC till it makes up 3% of the current 100% Tiny treasury, then rotating to another pair until it takes up another portion of the treasury:
so a rotation of assets like:
goBTC/wBTC
goETH/wETH
tALGO/ALGO
GOLD/USDC
SILVER/USDC
TINY/goBTC.
In part this will also allow us to DCA into the selected pools and take advantage of the day to day price swings of assets. Although I do wonder if fAsset pairings may be more beneficial to Algorand as a whole by driving attention and liquidity to those pools, that are IMO largely underutilized compared to the double-dip benefits of providing lending liquidity to stimulate Algorand’s defi scene and expanding Tinyman’s treasury.
Should other assets of interest to the community open up, these can be added (or subtracted) from time to time as warranted with other community Governance votes (an example would be Meld Gold is focused on Silver/Gold assets atm but has tokens like Meld Palladium and Meld Platinum that could be added if of interest once they go live).
Benefits:
Another avenue to reduce selling price pressure on Tiny is building more ties to other defi community members, (Folks, Meld, Algo Mint) as well as providing a more diversified treasury and specifically earmarking these funds for the future expansion efforts of Tinyman as guided by governance proposals and votes.
Metrics for Success:
A rise in overall stability in token price, as well as reducing Tinyman’s entire treasury reliance on Tiny price.
Budget and Funding: Funding from this program would come by redirecting our current fees allocated to the BBB program once it sunsets, or diverting part of those fees to this project.
Additional Information: The only real comparative action other platforms have that could be used as an example that I have extensive participation in is Folks Finance current community treasury. I used what knowledge I have of it and votes taken at times to help shape this proposal.